Trump’s 90-day tariff delay sparks global trade uncertainty
According to Donald Trump, the European Union was very "clever" in its response to the tariffs he imposed on nearly the entire globe.
He said this because the EU decided, on Thursday, April 10, to delay its detailed response to U.S. tariffs for 90 days.
"They were ready to announce retaliation, but then they learned what we did with China and the others… and they said to themselves: — Look, let’s hold off for a while," said Donald Trump at the Cabinet meeting, repeating that the EU was "designed to exploit the United States."
In response to the European Union’s decision to delay its response to U.S. tariffs, Donald Trump announced that he would ease the pressure on the wine and spirits industry. French wines and spirits were already set to be taxed by 20% upon entering the United States. However, just a few hours later, U.S. President Donald Trump, in a characteristic move, eased the pressure, declaring that he was suspending the planned increase in customs duties for that day, and European products would not be taxed at a rate higher than 10% during this period.
This brought relief to the industry, especially since, at one point, Trump had threatened to impose tariffs of up to 200% on European alcohol. The prospect of virtually shutting down the main export market for French wines and cognacs was a serious concern. Indeed, the stakes are huge. Sales in the United States, the main market for French wines and spirits, amounted to 3.8 billion euros in 2024, including nearly 800 million euros for champagne. This accounts for a quarter of French alcohol exports and nearly half of U.S. imports of European wines and spirits.
Meanwhile, the EU and the United Arab Emirates will begin negotiations for a free trade agreement, announced European Commission President Ursula von der Leyen on Thursday. This announcement comes at a time when the EU is increasingly looking to diversify its trade partners, in response to an unpredictable U.S. ally.
However, the 90-day grace period granted to the countries with which it aims to negotiate is nothing more than a sword of Damocles that could bring chaos at any moment. The world is still questioning Donald Trump’s intentions.
In these turbulent times, it is reassuring to think that a rational plan, however unpleasant, is behind the scenes. The most destabilizing realization would be to discover that there is no strategy, just the pride and selfishness of one individual.
Translation by Iurie Tataru
